Featured Product

    SRB Sketches Path to Further Ensure Bank Resolvability

    March 22, 2021

    In a recently published article, the SRB Board member Boštjan Jazbec discussed the progress made in ensuring bank resolvability in 2020. Introduction of a new resolution planning cycle based on a 12-month period was a major milestone in 2020 while the start of the gradual phase-in of the Expectations for Banks was the second key milestone. Additionally, in a press briefing, the SRB Chair Dr. Elke König highlighted that, in the coming years, SRB focus will continue to be on building resolvability for banks. SRB must keep up the momentum on increasing the Minimum Requirement for own funds and Eligible Liabilities (MREL), especially in light of the new rules and deadlines in the revised Bank Recovery and Resolution Directive (BRRD2), she noted.

    The SRB Chair announced that the 2021 MREL policy, an expansion of the current policy, will be published in time for the new resolution planning cycle. Also, SRB will soon publish an updated framework on the "Public Interest Assessment," which is a key element for deciding whether a bank will be resolved or go into insolvency. This updated framework will complement the existing idiosyncratic assessment with a scenario reflecting systemic stress, or to put it into simple terms “a rainy day scenario.” In the next few years, SRB plans to fully operationalize the use of all resolution tools and their combined use for all banks, and not least for mid-size banks heavily reliant on deposit funding, which may find it challenging to access markets and issue debt. The SRB Chair also noted that all banks under the SRB remit have received bespoke work programs for 2021 and are expected to have built up their capabilities on all aspects of ensuring resolvability by the end of 2023. Finally, she emphasized the necessity of completing the Banking Union and of the progress toward building a harmonized deposit insurance framework and insolvency procedure for banks across all EU member states.

     

    Related Links

    Keywords: Europe, EU, Banking, Resolution Planning, MREL, Basel, Banking Union, Resolution Framework, BRRD, Regulatory Capital, SRB

    Featured Experts
    Related Articles
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    News

    PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List

    The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.

    September 09, 2022 WebPage Regulatory News
    News

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.

    September 08, 2022 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposed Regulation on Data Act

    The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).

    September 08, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8511